Alpine F1’s 2023 financial results show a team managing to stabilize revenue, but suffering from rising costs and declining performance on the track.
In 2023, Alpine F1’s turnover reached 300 million euros, an amount very close to the 299 million euros achieved in 2022.
However, this stability of income masks a less flattering reality: a notable drop in gross profits of 7 million euros. Indeed, despite similar revenues, administrative costs increased, reducing operating profit from 43 to 22 million euros.
After tax, Alpine’s profits collapsed from €31 million in 2022 to just €9.5 million in 2023, a fall of more than 69%. This situation is largely explained by difficulties in maintaining competitive performance on the track.
Impact of sports performance on income
Alpine’s results in 2023 were directly affected by a decline in their sporting performance. If the good performances in 2022 had allowed the team to improve bonuses by 8.5%, the situation was reversed this year. The weaker performance negatively impacted sponsorship and merchandising revenue, leading to a 7% decrease in these revenue sources.
These less convincing sporting performances weighed heavily on the team’s finances, reducing the attractiveness for sponsors and commercial partners. Competitiveness on the track therefore remains a key element of financial success in F1, as these results show.
An increase in operational costs
At the same time, operating costs rose rapidly, increasing by 8.6% compared to the previous year. According to Alpine’s financial report, this increase in expenses is linked to several factors, including inflationary pressure and the growth of the team’s workforce and infrastructure.
Despite efforts to control expenses, the operating margin fell by 49%, settling at just 22 million euros for 2023.
Sale of 24% of Alpine F1 shares
Another highlight of the year for Alpine, the team sold 24% of its shares to Forest Intermediate Holdings, a group made up of Otro Capital, RedBird Capital Partners and Maximum Effort Investments. Renault SA, Alpine’s parent company, however, retains 76% of the shares.
This sale of shares aims to support the future development of the team and strengthen its competitiveness in Formula 1, while diversifying its investors. It remains to be seen whether these new resources will allow Alpine to overcome the financial and sporting challenges it faces.
